Question

Corporate federal income tax rates

a. are the same for all level of corporate income.

b. phase out the benefits of lower tax brackets as corporate income increases.

c. reach a high of 50 percent for earnings over $18,300,000.

d. decrease as income increases.

Answer 1

Answer:

Option B : phase out the benefits of lower tax brackets as corporate income increases.

Explanation:

Option A is incorrect because the income tax rates are not the same for all level of corporate income. The tax rate increases as the income increases upto to maximum limit.

Option B is correct because Corporate federal income tax rates phase out the benefits of lower tax brackets as corporate income increases.

Option C is incorrect because The maximum or the highest tax bracket is of 37%.

Option D is incorrect because the income tax rate increases as income increases.